ITT Inc (ITT)
Receivables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,283,000 | 3,228,500 | 3,160,000 | 3,059,400 | 2,987,700 | 2,898,500 | 2,834,500 | 2,792,800 | 2,765,000 | 2,788,200 | 2,689,800 | 2,512,900 | 2,477,800 | 2,488,300 | 2,609,000 | 2,814,200 | 2,846,400 | 2,805,700 | 2,774,400 | 2,751,300 |
| Receivables | US$ in thousands | 675,200 | 674,000 | 689,300 | 669,900 | 628,800 | 628,900 | 605,700 | 615,800 | 555,100 | 560,200 | 553,400 | 546,300 | 507,500 | 490,200 | 463,200 | 573,900 | 578,400 | 574,300 | 600,000 | 582,700 |
| Receivables turnover | 4.86 | 4.79 | 4.58 | 4.57 | 4.75 | 4.61 | 4.68 | 4.54 | 4.98 | 4.98 | 4.86 | 4.60 | 4.88 | 5.08 | 5.63 | 4.90 | 4.92 | 4.89 | 4.62 | 4.72 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,283,000K ÷ $675,200K
= 4.86
ITT Inc's receivables turnover has shown relatively stable performance over the past eight quarters, ranging from 4.54 to 4.86. The receivables turnover ratio measures how efficiently the company collects outstanding receivables from its customers during a specific period. A higher ratio indicates a more efficient collection process.
The consistent range of values around 4.5 to 4.9 suggests that ITT Inc has been able to effectively convert its accounts receivable into cash multiple times throughout the year. This indicates that the company is efficient in managing its credit policy and collecting payments from customers in a timely manner.
Although the ratio has fluctuated slightly quarter by quarter, the overall trend shows a stable performance in terms of receivables turnover. ITT Inc's ability to maintain a relatively high receivables turnover ratio indicates sound credit and collection policies, which ultimately can contribute to healthy cash flow and liquidity for the company. It is important for ITT Inc to continue monitoring and managing its receivables effectively to sustain its efficient collection process and ensure long-term financial health.
Peer comparison
Dec 31, 2023